Tourism small businesses face Christmas wipeout amid Labor’s backpacker visa delays

NSW Nationals

With 100 days to go until Christmas Day, Australia’s tourism sector is bracing for what it fears could be its toughest festive season yet.

Nationals Leader Matt Canavan and Shadow Minister for Tourism David Littleproud have met the Australian Tourism Industry Council (ATIC), as it warns $3 billion in revenue and 20,000 jobs are at risk, ahead of what is normally a busy holiday period.

Senator Canavan said the tourism industry is extremely concerned about Labor’s pause on applications coming from 24 of 29 countries in the work and holiday visas (subclass 462) while holiday visas (subclass 417) are also being processed more slowly.

“Labor’s go-slow approach on backpacker visa applications is costing the tourism industry and creating a lot of panic among small businesses, while putting thousands of jobs at risk,” Senator Canavan said.

“We do need to bring migration numbers down, but we have 3 million people in Australia on temporary visas, or an extra million on temporary visas than before COVID. Of that extra million, just 65,000 are on working holiday maker visas – or 6.5 per cent.

“It isn’t good enough that Labor’s attempt to curb migration through its out-of-control temporary visa program is stopping small businesses from getting the workers they need.

“The Nationals will not be making any cuts to working holiday maker visas for regional Australia. Our backpacker visas are crucial to businesses in regional Australia. They are also not the source of the migration problem that Australia is experiencing and so shouldn’t be targeted for it.”

Mr Littleproud said there are a raft of other issues, including the fuel crisis, as well as the cost-of-living crisis, keeping more families at home this year.

“The tourism industry is being attacked all fronts because Labor couldn’t keep its spending or its migration under control,” Mr Littleproud said.

“Families can’t afford the fuel to travel to their favourite holiday destination this Christmas, and they can’t afford to splurge on a holiday either because they are too busy trying to make ends meet. This is especially hurting regional tourism and places that require fuel to get to – such as outback Queensland.”

ATIC CEO Erin McLeod said the government needs to provide clarity on changes to the working holiday make program.

“Backpackers are tourists not migrants. They are big spenders in our communities and help fill critical, seasonal labour shortages,” Ms McLeod said.

“They are often the backbone of local regional economies. Recent polling shows two-thirds of Australians do not personally consider backpackers or tourists on temporary visas to be migrants, while 80 per cent consider Working Holiday Makers an important source of workers for Australian businesses.

“We are also concerned that ‘normal tourist visas’ are next – which is why the tourism industry needs clarity.

“Regional communities stand to lose twice: first through the loss of valuable tourist dollars, and again through the loss of an important seasonal backpacker workforce. The broader impact on regional economies would be significantly greater than these figures show.”

Seafood Industry Australia CEO Dr John Ackerman said employers need to know what has changed, what is being considered and how government will consult.

“Skilled migration and worker holiday makers support all aspects of our food and seafood production, along with value chains that support Australia’s prosperity and growth – including tourism, hospitality, and retail,” Dr Ackerman said.

“We need to restore an ability to prioritise regions, food production, and ensure there’s timely processing of worker holiday visas.

“Seafood needs both skilled migration and transient labour to fill roles that the Australian domestic market cannot supply.”

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